It seems sensible to assume that parallel imports are affected by the Euro to Pound exchange rate as they are sourced from Europe and sold in the UK.
Therefore we looked at the prices we had seen advertised for parallel imports by wholesalers and importers over the last 22 years. Then we compared the exchange rate with the average PI price and with the number of PI offers we had seen in price lists sent to pharmacies and dispensing doctors.
The end result was there do seem to be relationships as both the record count and the average price tie in with the exchange rate to some extent.
The PI record count has a relationship with the Pound to Euro exchange rate (ie 1.16) with a correlation of 0.583 where 0 is no relationship and 1 is a perfect relationship.
The average PI Import price has a stronger relationship with the Euro to Pound exchange rate (ie 0.85) with a correlation of 0.747.
This means that both the number of PI prices we have seen and the average PI price have relationships with the exchange rate.
The relationship between the average PI Import price and the Euro to Pound exchange rate (ie 0.85) may reflect the cost of purchase of medicines in Europe, and link between the PI record count and the Pound to Euro exchange rate (ie 1.16) may be explained by the spending power of a strong Pound £.
So, in other words for a strong Pound £ (ie £1=€2) would result in high a high volume of imports but low prices, whereas a weak Pound £ (ie £1=€0.5) would produce a low import volume but high prices.